Friday, April 25, 2014

Stocks in the news this week (Apr 25, ‘14)

Electioneering ‘tamasha’ is gradually winding down, with NaMo camp confident of victory and all the others hoping for a piece of the pie post May 16 results. Focus is now shifting to Q4 results of India Inc.

An early F&O settlement day (due to election holiday on Thursday) saw both Sensex and Nifty close at new lifetime highs on Wed. Apr 23 – thanks to strong FII buying. Different analysts are trying to outguess each other about the election outcome and suggesting appropriate investment strategies.

The smart thing to do would be to stick to current financial and asset allocation plans without getting swayed by what catastrophe/euphoria may follow after May 16. The market always provides money-making opportunities.

Given below are charts of some stocks in the news this week. Please do not fail to do your due diligence before buying or selling.

Astral Poly

The stock of Astral Poly has been in a strong bull rally for more than 2 years. It has more than doubled in price since the previous stock split 9 months back. The management is considering another stock split, which is the reason for the sharp high volume price spurt. All four technical indicators are looking overbought and showing negative divergences by failing to touch new highs. Some correction/consolidation may follow.

Cera Sanitary

The stock of Cera Sanitary has been in a spectacular bull rally since touching a low in Dec ‘11. Of late, it was correcting after forming a small double-top above the 900 level. Today’s high volume price surge occurred after declaring very good Q4 results. Technical indicators are in bullish zones. New highs are likely soon.

Tata Tele

The Tata Tele stock has been struggling to get out of a strong bear grip. News about NTT Docomo’s plan of selling its 26% stake in the company led to a high volume rise in price. There are rumours about Vodaphone’s interest in picking up the stake. ROC and RSI are in their overbought zones. MACD and Slow stochastic are in bullish zones. Some more buying may follow.

Yes Bank

The stock of Yes Bank had dropped into a bear market back in July ‘13 because of control issues between the families of the original promoters. The stock price had already doubled from its Aug ‘13 low and re-entered a bull market earlier this month. Good Q4 results and a higher dividend announcement caused a price rise on good volumes. All four technical indicators are showing negative divergences. Expect some consolidation or correction.